A presentation on modern marketing and advertising in regards to how the Internet has changed the landscape. Focuses on the umbrella topics of new innovations, privacy issues, and commerce. Specifically discusses the principles of advertising, the user experience, contextual advertising, behavioral targeting, semantic targeting, interactive advertising, advergaming, integrated marketing communication, multimodal advertising, social media marketing, customer relationship marketing, search engine marketing, freemiums, and paywalls. Brings up the tools Facebook Beacon Ads, the Honda Fit game, Call Genie, FourSquare, Google AdSense, and Google AdWords

1. Modern marketingand advertising How the internet has changed the landscape By Liz, Dan & Beth COM-255-111 Spring 2011

2. Principles of advertising Advertising: A complex, mostly paid form of communication that uses mass media to reach broad audiences and connect the identified sponsor to the target audience A type of marketing communication Marketing communication: All the communication techniques used to reach customers and deliver a message Branding/Positioning strategy: The way marketers create a special meaning for a product by creating a brand image to distinguish the brand in a marketplace already cluttered with similar brands and products Target audience: A more specific group of people to whom an advertisement is directed and whose response determines if the ad is effective Targeting: Identifying the people who are the desired audience for the message Without targeting the right audience, money would be wasted on an audience that won’t buy the product

3. Principles of advertising Characteristics of Good Modern Advertising Strong advertising strategy: The logic and planning behind an advertisement Research the target audience and develop a strategy to reach them Strong creative idea/concept: Focus on one main theme/concept in the ad Strong creative execution: Well-thought-out details and well-produced quality Creative use of the media: Deciding the best place/means to deliver the ad Choose outlets that will efficiently and effectively reach the target audience Cost-effectiveness: Reaching many people for little money Effective ads: Advertisements that deliver the message that the advertiser intended and consumers respond as the advertisers hoped they would Gain attention Create a positive impression for the brand Separate the brand from the competition in the mind of consumers Influence people to respond in the desired ways

4. Principles of advertising Hierarchy of Effects Model: A linear model that works in purchasing decisions Awareness – See or hear about the product Comprehension – Understand what the product is and how it’ll benefit oneself Conviction – Develop positive attitudes toward the product Action – Buy the product Advertising can only influence awareness, comprehension and conviction

5. The changing landscape in advertising Modern advertising focuses on the user experience and integrated marketing, and the Internet helps make it possible.

6. The user experience: context advertising Contextual advertising: A form of targeted advertising for advertisements appearing on websites or other media, such as content displayed in mobile browsers The advertisements themselves are selected and served by automated systems based on the content displayed to the user Contextual Ad Subject

7. The user experience: Behavior targeting Behavioral targeting (BT): Uses information collected on an individual’s web-browsing behavior, such as pages they have visited or the searches they have made, to select which advertisements to display to that individual Helps reach target audience Allows site owners or ad networks to display content more relevant to the interests of the individual viewing the page Some studies have found it more effective than contextual advertising reading about the Jets NFL draft adding Foster the People to bands I like, and searching their lyrics visiting the Relay For Life site researching studying abroad looking up shows at The Chance reading about video games browsing art techniques online dress shopping

8. The user experience: Behavior targeting Behavioral targeting sparks controversy over privacy issues Violates users’ expectations of privacy “Implied consent”: Web activity is tracked by advertisers without the users’ awareness or consent Tracking cookies: Enable the provider that inserted them to track the web sites that an individual has visited and capture these data and store them along with the IP address that identifies the user Web beacons: Code on web pages that determine that an individual has opened a page, captures the IP address of that individual, then can track the activity of the individual on a site e.g. Facebook Beacon Ads: Takes data from web destinations and mashes it up with Facebook’s internal information to help build more focused advertising messages “The javascript on the site pops up a little screen which asks if you want to publish the information on Facebook. If you say no, your friends won’t see the information, but apparently Facebook still receives it. This means that if you are a Facebook member, Facebook will know what you are doing on each of their partner sites. And there is no way for you to opt out of that.” http://gigaom.com/2007/11/06/facebook-beacon-privacy-issues/

9. The user experience: semantic targeting Semantic targeting: Like contextual advertising, but instead of scanning a page for bided keywords, it examines all the words and identifies the senses of those words. Examines all the words before it accurately identifies the subject matter of the entire text and delivers an in-context advertisement; Prevents incorrectly assigned ads due to words with multiple meanings e.g. An ad for Wrigley Village Rooftops was placed aside this e-mail from the MLB (i.e. “Wrigley Field”) Sentiment analysis: Can determine whether content is talking about a subject in a positive or negative light Includes availability of brand protection filtering For example, it can block the placement of erotic ads that would hurt a brand’s image

10. The user experience: interactivity Interactive advertising: Uses online interactive media to communicate with consumers and execute promotions; Creates a two-way communication Promotes repeated traffic to websites, viral marketing, and an increased likelihood for consumers to remember the brand Emphasis on user-generated content (UGC) e.g. HP You on You Contest e.g. PixFusion Advergaming: Using video games to advertise Above the Line (ATL): Games on a website that feature the company’s products and aim to increase consumers’ time spent on website Below the Line (BTL): Games published as usual but involve advertising Product placement: The deep integration of products/brands in gameplay e.g. NFL games, Food Force, Homefront Through the Line (TTL): Uses URL hyperlinks within the game, designed to induce the player to visit a webpage with a BTL ad Honda Fit game

11. IMC: Multimodal advertising Integrated Marketing Communication (IMC): The coordination and integration of all marketing communication tools, avenues, functions and sources within a company into a seamless program that maximizes the impact on consumers and other end users at a minimal cost Multimodal advertising: Uses multiple modes (e.g. mobile phones) Call Genie: Customers can monetize local mobile search traffic with coupons and promotions; Can provide its customers with a multi-modal, multi-event hosted service for purposes of tracking, logging, summarizing, and reporting on the various actions taken by consumers with respect to such promotions http://www.acm.org/icmi/1998/Papers/Lyons.pdf About a multimodal interactive advertising that integrates computer vision and speech recognition technologies to allow the advertising display to determine when a customer is nearby and to respond to that customer’s location in space, gestures and speech. The application has been tested in the laboratory and exhibition hall settings but has not yet been deployed in public. Call Genie demos

12. IMC: Social Media Marketing Social Media Marketing (SMM): Centers on efforts to create content that attracts attention and encourages readers to share it with their social networks Social media has become a platform that is easily accessible to anyone with internet access A corporate message spreads from user to user and presumably resonates because it is coming from a trusted, third-party source, as opposed to the brand or company itself Increased communication for organizations fosters brand awareness and often, improved customer service Serves as a relatively inexpensive platform for organizations to implement marketing campaigns Viral marketing: Designed to create a groundswell of demand for a product based on messages circulated on the internet; consumers create buzz about a product or brand Videos, Flash games, brandablesoftware, images, texts, e-mails, blogs FourSquare Integrates multimodal advertising and social media marketing

13. IMC: Customer Relationship Marketing Customer Relationship Marketing (CRM): Focuses on customer-relationship management; Maintains relationships by communicating with customers and keeping track of their interactions e.g. Sending birthday e-cards and e-mailing sales promotions Permission marketing: Presents customers with the options to allow the company to send them promotional materials e.g. Subscribing to a newsletter received through e-mail Creates some controversy because of intrusiveness

14. Search Engine Marketing (SEM) Search Engine Marketing (SEM): Seeks to promote websites by increasing their visibility in search engine result pages (SERPs) through the use of paid placement and contextual advertising Paid placement Pay Per Click (PPC): An Internet advertising model used to direct traffic to websites, where advertisers pay the hosting service when the ad is clicked Cost Per Click (CPC) With search engines, advertisers typically bid on keyword phrases relevant to the target market; With content sites, there is typically a charged fixed price per click Search Engine Optimization (SEO): The process of improving visibility of a website or webpage in search engines via the “natural” or un-paid (“organic”/”algorithmic”) search results Earlier placement in results and higher frequency of results leads to more visitors Considers which search engines are used and what terms are searched Optimizing a website may involve editing the HTML and associated content/links

15. SEM: Google ad sense Google AdSense: A free, simple way for website publishers of all sizes to earn money by displaying targeted Google ads on their websites, and allows companies to search their site users while earning money by displaying Google ads on the search results pages Google’s servers use a cache of the page to determine a set of high-value keywords E-mail from the ACS about Relay For Life E-mail from Wachovia about balance alert E-mail from potential internship HR rep E-mail from mom about summer internship plans

16. SEM: Google ad sense How Google AdSense Works Choose the type and placement of ad units to be displayed Specify where ads should appear Choose what types of ads can compete for those slots Highest-paying ads display Advertisers bid on inventory in a real-time auction Always show the highest-paying ad Get paid Google bills advertisers and ad networks Get paid through reliable payment options

17. SEM: Google ad Words Google AdWords: Allows the creation of ads and selection of keywordsso that when users search on Google using one of those keywords, the ad may appear next to the search results Helps advertise to an audience already interested in the product Only requires payment when people click on the ads Search Advertisements

18. Freemiums and Paywalls Freemium: A business model that works by offering a basic product/service free of charge (such as software, web services, etc.) while charging a premium for advanced features, functionality, or related products/services Current concern about what happens when people start ignoring ads on web pages Paywall: Blocks access to a webpage with a screen requiring payment Currently being implemented with some periodicals and newspapers online e.g. The New York Times http://mashable.com/2010/08/17/web-faceoff-freemium-vs-ad-supported/